In the circular flow model, can firms can produce the output they sell to households only by buying.

Resources

Explanation:

In the model of circular flow, which is an economic model, it states the flow of the money via the economy. This model shows or defined the circular flow of the income among the business sector and the household sector.

So, in this model, the firms could produce the output in order to sell the output to households, only by buying or purchasing the resources. As the resources is defined or described as the supply or the source from which the benefit is produced or created and has some utility.

Therefore, the resources are the one which is purchased and the firms could produce the output.

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